China’s ferrous futures remained in negative territory for most of the day before plummeting in the last 40 minutes of trading. The benchmark steel contracts shed over 3% of their values while that for iron ore is 7.5% lower than Wednesday’s settlement price.
Spot prices for hot-rolled coil fell 30-70 yuan ($4.50-10.60) per tonne in the country, while those for rebar tumbled by 100-170 yuan per tonne.
A trader in Beijing thinks that demand for finished steel will likely weaken from this point on, which will weigh on that for iron ore as well.
Spot rebar prices have “definitely peaked”, a mill-affiliated futures trader said, but this may not...